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Deal WizardHMO · Property Analysis
Earlham Road, Close To The Uea NR4, 6 bed detached house for sale, £600,000 - Zoopla
Address: Earlham Road, Close To The Uea NR4Price: £600,0006 Bedroom(s)2 Bathroom(s)Analysis Date: Apr 23, 2026
ROCE: 44.8 %Tenure Type: FREEHOLDProperty Type: DetachedSize: 0 sq ft / 0 m²Risk: Low-to-moderateProject Time: 4 weeks

HMO Investment Analysis

Property Analysis for Earlham Road, NR4 7HW. This is a 6-bedroom detached property currently finished to a high standard, offering immediate HMO conversion potential.

Executive Summary

This 6-bedroom property represents a prime HMO investment opportunity in a high-demand area near UEA. The property is already in excellent condition, minimizing heavy capital expenditure. By implementing mandatory HMO fire safety and amenity standards, this asset can achieve high occupancy and strong cash flow. Initial feasibility suggests robust returns, though licensing compliance and Article 4 planning risks must be managed.

Acquisition Overview

Purchase Price
600000
Down Payment
40000
Bank Fee
0.03
Interest Rate
0.01
Buyer Type
FTB

Projected Rental Income (Post-Refurb)

Monthly Rent
3600
Annual Gross Rent
43200
Yield (Gross)
7.20

Analysis based on average room rates of £600pcm in NR4. Conservative estimate for 6 occupancy.

Projected Cashflow & Returns

ROCE
44.8%
Monthly Cash Flow
2053.33
Annual Cash Flow
24640
Net Yield
4.11
The project demonstrates positive cashflow assuming interest-only financing. Note: First-time buyer status typically precludes standard BTL/HMO mortgage products; commercial financing or partner bridging may be required initially.

Licensing & Compliance

Norwich City Council enforces strict HMO standards. The current layout provides 6 bedrooms; however, fire safety works (interlinked alarms, FD30 doors) are non-negotiable for a license application.

Refurbishment Plan

Refurb Breakdown:

Fire Alarm System (LD2)1500
6x FD30 Fire Doors & Closers3000
Emergency Lighting (Hall/Kitchen)800
Kitchen Upgrade (Capacity/Worktop)3500
Thumb-turn Locks & Signage600
Furniture Packs (x6)3600
Misc. Electrical/Safety Certs1000
Total Refurbishment Cost14000

Timeline:

Weeks: 4 || Months: 1

Phase 1: Compliance Works & Safety Systems || 2 weeks
Phase 2: Kitchen & Furniture Staging || 2 weeks

Risk Level

Risk Level: 25

Low-to-moderate risk. The property is already fully renovated, which significantly reduces "unknown" building risks. The primary risk is planning (Article 4) and licensing enforcement. Ensure you consult the local council planning register before finalizing purchase for HMO change of use.

Negotiation Points

EPC & Compliance Missing - 15
Listing omits mandatory EPC. Demand verification of EPC rating and safety certificates to justify cost.
Licensing Hurdles - 20
Mandatory licensing for 6 bedrooms adds admin and cost. Use this to suggest a discount.

Investment Case Summary

Short Recommendation

Buy. Strong location, quality finish, and high yield potential. Mitigate planning risks through pre-purchase checks.

Detailed Recommendation

The property is well-positioned for an HMO strategy due to its 6-bedroom configuration and proximity to UEA/Hospital. The finish is high, reducing the scope of capital-intensive renovations. With the current housing market demand for professional/student shares, this property can be easily stabilized. Focus budget on legal compliance (fire safety, licensing) rather than cosmetic work. Ensure that the mortgage offer allows for HMO usage, as standard BTL products often restrict occupants to 3-4 unrelated individuals.